Cross Option Agreements in Practice: Protecting Business Value & Ensuring Succession Certainty

Introduction

Cross option agreements are a cornerstone of effective succession planning for shareholders in private companies, yet they are frequently misunderstood, poorly implemented, or dangerously out of date.

This session provides a practical, technical, and commercially focused analysis of cross option agreements, examining how they operate alongside shareholder agreements, Articles of Association and life insurance structures. It will also address the critical inheritance tax (IHT) implications, particularly in light of recent and proposed changes to Business Property Relief (BPR) and the increasing scrutiny of valuation mechanisms.

The session will highlight common drafting pitfalls, including mismatches between policy proceeds and share valuation, failure to align with Articles and timing issues post-death.

By the end of the session, attendees will be able to confidently advise clients on implementing or reviewing cross option arrangements and avoid costly errors that could result in loss of tax relief, disputes between shareholders and estates and funding shortfalls on death.

This is a highly practical session, grounded in real-life scenarios and transactional experience.

What You Will Learn

This webinar will cover the following:

• The structure and purpose of cross option agreements
• The distinction between cross options, buy/sell agreements and double option structures
• Interaction with shareholder agreements, Articles of Association and estate planning
• IHT treatment, including preserving BPR and avoiding a binding contract for sale
• Structuring life insurance policies to fund arrangements
• Share valuation methods and risks of outdated valuations
• Common drafting pitfalls and procedural issues on death
• A practical case study demonstrating a cross option in operation
• How BPR reforms may impact planning
• A practical checklist for reviewing existing arrangements

This pre-recorded webinar will be available to view from Tuesday 24th November 2026

Alternatively, you can gain access to this webinar and 2,400+ others via the MBL Webinar Subscription. Please email webinarsubscription@mblseminars.com for more details.